201 S. Anaheim Blvd.
Suite 501
Anaheim, CA 92805
Tel: (714) 765-5111
Fax: (714) 765-5215
www.anaheim.net
CITY COUNCIL AGENDA REPORT
City of Anaheim
HUMAN RESOURCES DEPARTMENT
DATE: JUNE 9, 2026
FROM: HUMAN RESOURCES DEPARTMENT
SUBJECT: APPROVAL OF LETTERS OF UNDERSTANDING BETWEEN THE CITY OF ANAHEIM AND AFSCME LOCAL 2002 (GENERAL
MANAGEMENT, PROFESSIONAL/TECHNICAL MANAGEMENT,
AND CONFIDENTIAL UNITS) RELATED PERSONNEL RULE
REVISIONS
ATTACHMENT (Y/N): YES ITEM # 22
GOVERNMENT CODE § 84308 APPLIES: NO
RECOMMENDATION:
That the City Council take the following actions:
1. By Resolution, approve a Letter of Understanding (“LOU”) between the City of Anaheim and the American Federation of State, County, and Municipal Employees, Local 2002, General Management Unit (“AFSCME General Management Unit”), authorizing a base salary wage adjustment of four percent (4.0%) for the fourth year of the term, effective June 19, 2026, pursuant to a reopener provision in the July 1, 2023 through June 30, 2027 Memorandum of Understanding (“MOU”) between the City and the AFSCME General Management Unit.
2. By Resolution, approve a Letter of Understanding (“LOU”) between the City of Anaheim and the American Federation of State, County, and Municipal Employees, Local 2002, Professional/Technical Unit (“AFSCME Professional/Technical Unit”), authorizing a base salary wage adjustment of four percent (4.0%) for the fourth year of the term, effective June 19, 2026, pursuant to a reopener provision in the July 1, 2023 through June 30, 2027 Memorandum of Understanding (“MOU”) between the City and the AFSCME
Professional/Technical Unit.
3. By Resolution, approve a Letter of Understanding (“LOU”) between the City of Anaheim and the American Federation of State, County, and Municipal Employees, Local 2002, Confidential Unit (“AFSCME Confidential Unit”), authorizing a base salary wage adjustment of four percent (4.0%) for the fourth year of the term, effective June 19, 2026, pursuant to a reopener provision in the July 1, 2023 through June 30, 2027 Memorandum of Understanding (“MOU”) between the City and the AFSCME Confidential Unit.
Approval of Letters of Understanding Between the City of Anaheim and AFSCME Local 2002 Establishing Fourth-Year Wage Adjustments, and Approval of Related Personnel Rule Revisions
June 9, 2026
4. By Resolution, adopt the revised Personnel Rules and Policies Covering Non-Represented Full-Time and Part-Time Employees (“Personnel Rules”) amending Appendices A, B, and C to authorize a base salary wage adjustment of four percent (4.0%), effective June 19, 2026, for full-time non-represented employees to maintain compensation alignment with classifications performing similar duties and responsibilities.
DISCUSSION:
The City of Anaheim and the American Federation of State, County, and Municipal Employees (“AFSCME”), Local 2002, have Memoranda of Understanding (“MOUs”) with the General Management Unit, Professional/Technical Unit, and Confidential Unit for a term of July 1, 2023, through June 30, 2027. Collectively, these bargaining units represent employees serving in a broad range of management, professional, technical, administrative, and confidential classifications throughout the City.
The AFSCME General Management Unit represents approximately 178 full-time employees and 2 part-time employees in management classifications across all City departments. Representative classifications include Deputy Director positions, Utilities Assistant General Manager, Financial Accounting Manager, Housing Coordinator, City Engineer, Principal Planner, Community Preservation Supervisor, Principal Electrical Engineer, Risk Manager, Chief Assistant City Attorney – Prosecution, Administrative Services Manager, Assistant to the City Manager, Building Official, City Librarian, Crime Analysis Supervisor, Fire Marshal, Housing Authority Manager, Information Systems Manager, and Police Communications Manager.
The AFSCME Professional/Technical Unit represents approximately 226 full-time employees and 32 part-time employees in classifications such as Principal Accountant, Event Manager II, Electrical Capital Improvement Projects Manager, Senior Planner, Fire Training Facilities Administrator, Senior Management Auditor, Payroll Manager, Deputy City Attorney IV, and the Human Resources Analyst series.
The AFSCME Confidential Unit represents approximately 59 full-time employees and 7 part-time employees in classifications providing confidential administrative and operational support throughout the City, including Executive Secretary, Administrative Assistant, Office Specialist II – Confidential, Clerk – Confidential, Legal Secretary, Claims Assistant, Audit Technician, and Human Resources Technician. Several classifications within the Confidential Unit have equivalent counterparts represented by the Anaheim Municipal Employees Association (“AMEA”) but are distinguished by their involvement in personnel matters or access to highly sensitive and confidential work products.
The current MOUs between the City and the AFSCME bargaining units included a reopener provision requiring the parties to meet and confer within ninety calendar days following completion of a citywide Classification and Compensation Study. The purpose of the reopener was to evaluate general wage increases for implementation during the fourth year of the MOUs.
Approval of Letters of Understanding Between the City of Anaheim and AFSCME Local 2002 Establishing Fourth-Year Wage Adjustments, and Approval of Related Personnel Rule Revisions
June 9, 2026
Accordingly, the City met and conferred with AFSCME beginning on December 10, 2025, and reached agreement on May 22, 2026 to provide a four percent (4%) base salary increase for all AFSCME-represented classifications, effective June 19, 2026.
In conjunction with the negotiated AFSCME agreements, staff is also recommending corresponding amendments to the Personnel Rules providing a four percent (4.0%) base salary increase for non-represented management classifications effective June 19, 2026. These adjustments are consistent with Anaheim Municipal Code Section 1.05.020.0103, which provides that positions performing similar duties and responsibilities should be classified and compensated on a uniform basis. Further, these adjustments will maintain internal equity and market competitiveness.
Approval of the proposed Personnel Rule revisions will maintain appropriate compensation relationships between represented and non-represented classifications, including supervisory, managerial, and executive positions. The adjustments will also support and maintain internal equity and market competitiveness. Covered classifications include, but are not limited to, Chief Assistant City Attorney – Civil, Deputy City Attorney IV – Confidential, Executive Coordinator, Correctional Facility Manager, Deputy Police Chief, Deputy Human Resources Director, classifications within the Human Resources Employee Relations Division, and executive leadership classifications including appointees.
Non-Represented Non-Management and Non-Represented Part-Time classifications that do not have a full-time equivalent classification are being studied separately as part of Phase 2 of the classification and compensation study, with a completion date anticipated over the next 90-days.
IMPACT ON BUDGET:
The estimated cost of the proposed four percent (4%) base pay increase is approximately $4,500,000 in Fiscal Year 2026/27. Approval of this item will increase the proposed Fiscal Year 2026/27 budget accordingly.
Respectfully submitted,
Linda N. Andal
Human Resources Director
Attachments:
1. Resolution – AFSCME General Management Unit
2. Resolution – AFSCME Professional/Technical Unit
3. Resolution – AFSCME Confidential Unit
4. Resolution – Personnel Rules
5. Letter of Understanding – General Management Unit
6. Letter of Understanding – Professional/Technical Unit
7. Letter of Understanding – Confidential Unit
8. Appendix “B” (Wages) – AFSCME General Management Unit Approval of Letters of Understanding Between the City of Anaheim and AFSCME Local 2002 Establishing Fourth-Year Wage Adjustments, and Approval of Related Personnel Rule Revisions
June 9, 2026
9. Appendix “B” (Wages) – AFSCME Professional/Technical Unit
10. Appendix “B” (Wages) – AFSCME Confidential Unit
11. Personnel Rules (Appendices A, B, and C) – FINAL
12. Personnel Rules (Appendices A, B, and C) - REDLINE